Asos, UK's largest online fashion retailer, recalled the said belts claiming that some of the metal used in the product tested positive for radioactive matter Cobalt-60.
Mohd Shuja, the owner of Royal Ascot Leather Co., said that the online retailer has now withheld payments for all the orders which it had placed with his firm, amounting to a total of pounds 64,000, forcing shutdown of his company's workshop.
Rejecting allegations that the belts had 'radioactive' material, Shuja said that following a complaint by Asos, Britain's atomic energy agency had asked India's Atomic Energy Regulatory Board to visit the Kanpur workshop and conduct tests.
The team which had come in February 2013 had, however, found no traces of any radioactive matter at either the the Royal Ascot Co. Workshop or in its products, Shuja claimed.
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"We were given a clean chit by AERB officials and the report was sent to British authorities who, however, did not respond to it," Shuja said.
Shuja said that a meeting has been fixed on June 7 between Royal Ascot Co.'s London-based agent and Asos officials where they are supposed to arrive at some kind of understanding in the matter.
But in case the talks proved unsuccessful, Royal Ascot Co. would take legal recourse for recovery of its dues, Shuja added.
He said that following the controversy, several other firms, which had placed orders with his company, were now turning away.
An Asos spokesperson had said over the recall: "A product supplied to Asos did not meet UK health and safety standards. Asos worked with all relevant authorities and undertook a precautionary product recall, in line with our high standards of quality and customer care.